December 11, 2019

By Lynda Kiernan

Vail, Colorado-based asset manager Manna Tree Partners has anchored a $12.7 million Series C for plant-based ingredient maker and B2B specialist Nutriati. Also participating in the round is existing investor Open Prairie through its Open Prairie Rural Opportunities Fund, a Rural Business Investment Company (RBIC) and growth stage private equity fund licensed by the USDA. 

This is the third investment for Manna, which was founded by Gabrielle Rubenstein, the daughter of David Rubenstein, a co-founder of Carlyle Group. After graduating from Harvard in 2010, Gabrielle studied agricultural economics and agribusiness management through a program at Purdue and Indiana Universities, and as a person with food allergies, launched Manna Tree Partners in 2018 to invest in companies with a focus on healthy food production.

Together with CIO Ross Iverson, and COO Brent Drever, the team sources deals through a deep network of partners, and leverages their combined experience and operational background to build a portfolio of companies that balance the need for healthy food and a transparent supply chain with growing valuable enterprises. Previous capital commitment made its maiden portfolio member Vital Farms, an ethical producer of eggs and butter, and MycoTechnology, a mushroom-focused food tech company.

Joining them is Nutriati, a company seeking to positively impact the plant-based food space and human health, through its offering of more sustainable and nutritious proteins, flour, and oil. Using pulses, including beans, peas, lentils, and chickpeas, Nutraiti produces plant-based ingredients that can replace eggs, stabilize liquid suspensions, and offer water binding capabilities in plant-based meats; non-dairy cheeses, yogurts, ice creams, and milks; tortillas, pretzels, puffs, gluten-free pizza crust, and bread.

“Nutriati is at the forefront of the plant-based trends being adopted by many of today’s consumers,” said Tom Doxsie, partner with Open Prairie, and Nutriati Board member. “Through proprietary processing and innovative product development, Nutriati is providing superior solutions to food and beverage companies for plant-based protein and non-dairy applications.”

As more and more consumers reach for dairy alternative products stemming from lactose intolerance, concern for animal welfare, concerns over the usage of antibiotics and possible hormones in production, or veganism, growth prospects for the category are also strengthening.

Since April 2017, plant-based food sales have increased by 31 percent with refrigerated plant-based meats driving the category with sales up by 37 percent. And in just the 12 months to July 2019, retail sales of plant-based foods in the U.S. grew by 11 percent, lifting the market value to $4.5 billion, according to recently released data from the Plant-Based Food Association (PBFA) and The Good Food Institute. 

Overall, 39 percent of U.S. consumers are trying to reduce their meat intake and increase the amount of plant-based foods in their diets. Furthermore, one-in-three consumers are buyers of plant-based meats, and one-in-three are opting for gluten-free foods.

“Nutriati uses science and technology to produce healthier ingredients, with an emphasis on taste, texture and nutrition,” said Brent Drever, COO, Manna Tree Partners. “We are proud to partner with Michael Todd and his team, which is committed to the research, development and commercialization of innovative and sustainable ingredients. As demand rises for healthier eating, Nutriati is well-positioned to grow for years to come.”

With the capital gained through this Series C, Nutriati plans to fuel its R&D initiatives, to increase production, and to build out its customer base.

“Manna Tree’s investment, alongside the recent funding from Open Prairie, will accelerate our growth, enable us to develop more innovative ingredients, increase production and reach new customers,” said Michael Todd, CEO, Nutriati.

“Brent and the Manna Tree team share our commitment to improving the quality of the food supply with healthier, better tasting options for consumers. In addition to capital, our strong investor base brings expertise and a deep network that will fuel our responsible growth.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.